Question
Asked Nov 18, 2019
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The weekly demand function for x units of a product sold by only one fir, is p=300-1/2x, and the average cost of production and sale is bar c= 100+2x dollars. find the x value wich maximizes profit; also find the price which maximises that profit.

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Expert Answer

Step 1

Given:

1
x and c = 100+2x
2
p 300-
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1 x and c = 100+2x 2 p 300-

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Step 2

Calculation:

Total profit production P(x) R(x)-C(x)..(1),
Where,
R(x) Total revenue function
C (x)= Total cost function
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Total profit production P(x) R(x)-C(x)..(1), Where, R(x) Total revenue function C (x)= Total cost function

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Step 3
Let us take c' 100+2x
Total cost function can be written as,
C(x)c'x
=(100+2x)x
= 100x2x2
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Let us take c' 100+2x Total cost function can be written as, C(x)c'x =(100+2x)x = 100x2x2

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